Thu | Aug 17, 2017

Final IDB loan for fiscal policy reform approved

Published:Thursday | December 15, 2016 | 12:00 PM

The Inter-American Development Bank (IDB) has approved the final $50 million loan of a policy-based loan series, providing budget support for the government’s fiscal policy reform.

The IDB says the $50 million loan will help to boost tax revenues, enhance control over budgetary expenditure and reinforce customs administration effectiveness.

This third and final phase of the program will also support the government’s efforts to tackle a reform of the National Insurance Scheme and promote the institutional strengthening of the Tax Administration Jamaica and of the Jamaica Customs Agency.

The first loan was approved in February 2014 and the second in August 2015.

IDB General Manager of the Caribbean Country Department, Therese Turner-Jones, says the government has shown a strong and continued commitment to enhanced Fiscal Responsibility Framework rules.

She says the economy’s growth projections for 2016/17 stand at around 1.8 per cent, based on the improvement in bauxite exports, higher tourism receipts, remittances and an upturn in agricultural production and exports.